Summit and Lionsgate Discussing Possible Merger

Summit Entertainment and Lionsgate, two of Hollywood’s largest independent producers/distributors, are reportedly discussing a possible merger. The two companies have discussed a merger in the past but were unable to come to terms over an agreement.

Summit Entertainment, which is flush with cash thanks to the multibillion dollar Twilight franchise, would be a valuable partner for Lionsgate, which currently holds $550 million in short and long-term debt. For its part, Lionsgate also offers value, including a robust slate of TV shows (including Mad Men) and a large film library that accounts for “8% of the domestic home entertainment market” according to The Hollywood Reporter.

Bloomberg, who originally reported the news, writes that previous talks broke down “over price and control issues” and that “Summit has additional suitors” besides Lionsgate. Last year, Lionsgate also tried to acquire MGM during the studio’s belabored bankruptcy, but was beaten out by Spyglass Entertainment.

Interestingly, an important element in these negotiations revolves around teen fantasy films. Summit has made a large portion of its revenues from the enormous success of Twilight, which has raked in over $2 billion for the company. Lionsgate, on the other hand, is looking to test the waters of the teen fantasy genre with its own high-profile film, The Hunger Games.

The Hunger Games (check out the first trailer here) could be a very lucrative film franchise. According to Bloomberg, The Hunger Games films could “generate $220 million to $733 million in earnings (before interest, taxes, depreciation and amortization) for Lionsgate over the next several years.”

Lionsgate is hoping for a box office bullseye with 'The Hunger Games'

With a merger, Summit and Lionsgate (which I’m calling SumminsGate for the time being) could potentially own two of the most popular and successful teen film franchises in history, which would be pretty impressive. Presumably, the profit from those films could help the companies produce even more films — and maybe even some original movies!

What do you think of these possible merger talks? Besides freaky Internet fan fiction, this is about as close to a Twilight-Hunger Games crossover as you’re going to get. Could it be a win for both companies?

I agree. So far, The Hunger Games is looking like it will be a pretty decent film. If they merge with Summit Entertainment and some of the people who worked on Twilight work on The Hunger Games…..yeah.

Really? 2 teen production company’s want have a romance. oh wait… I think Madea may join in becoming a vampire/werewolf. Katniss & Jacob have hungry werewolves babies. I guess the can’t seem to beat Legendary Pictures.
LP Movies: Batman Begins, The Dark Knight, Inception, 300, Sucker Punch, Hangover I & II, Superman, Man of Steel, Watchmen, Clash of the Titans, and etc.. (more superheroes, dark features ongoing. And the sequels to some of these and more. So, maybe a merger is need for these two to profit.

I was excited about The Hunger Games, untill I found out that Lionsgate was doing it, but I think I may give it a shot. Lionsgate did pretty good with The Forbidden Kingdom, but The Avengers cartoons were pretty stail bread for my tast. As for Summit, the Twilight saga probably reached the summit in the box office, but I don’t focus on the money, I focus on the movie. So the merging thing may be good, but I’ve been wrong before. P. S. If they do merge, then they better be done with sparkling Guiding Light.

Okay there is no way lionsgate and summit should combine. Twilight and hunger games are two different genres. One is romance fiction with vampires an werewolves and The Hunger Games are about normal teens fighting to survive which could happen in real life. You can’t compare these two movies since they are two different genres. So you can’t put together lionsgate and summit because they produce different genres.